Playbook: Late-taxes saga

Robert Gibbs, in look-ahead profile interview with CBS' Peter Maer: ““I’m not going to lie from that podium.”

House Minority Whip Eric I. Cantor of Virginia, reading the Daschle news off his BlackBerry to last night’s banquet of a House Republican retreat in the Allegheny Mountains: “It’s easy for the other side to advocate for higher taxes because you know what? They don’t pay 'em.

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PUNDIT PREP: Administration officials say the nomination will be fine -- they've gotten good feedback from senators. But the storm last night was ferocious, and they have to get through the next two days.

Birthdays: Jack Barbash, 14, will have a family party, followed by the “real” party: the Super Bowl with his buddies … the versatile BROOKE BUCHANAN of Senator McCain’s office (Hat tip: Leah C. Geach)

***How are you giving back? Through the “I’m In” campaign, Starbucks can help you find volunteer service opportunities in your community – visit here. Details at end of Playbook. ***

HOT SPRINGS, Va. -- -Good Saturday morning. FINALLY, AN ENCOURAGING STAT, from The Wall Street Journal: “The U.S. saving rate, which has fallen steadily since the early 1980s, dipping below zero in 2005, is now expected to rebound in 2009. Already, saving rose to nearly 3% of disposable income in the fourth quarter, from 1.2% in the previous quarter.”

SCOOP – Bloomberg, “White House Lawyers Look to Limit Commercial Use of President,” By Julianna Goldman: “Barack Obama’s popularity makes him a marketer’s dream. Now, the honeymoon may be over for those trying to profit from his appeal. White House lawyers want to control the use of the president’s image, recognizing the worldwide fascination about Obama’s election, First Amendment free-speech rights and easy access to videos and photos on the Web. ‘Our lawyers are working on developing a policy that will protect the presidential image while being careful not to squelch the overwhelming enthusiasm that the public has for the president,’ White House spokeswoman Jen Psaki said.”

COMING ATTRACTION, from the President’s radio address: “Soon my Treasury Secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families. We'll help lower mortgage costs and extend loans to small businesses so they can create jobs. We'll ensure that CEOs are not draining funds that should be advancing our recovery. And we will insist on unprecedented transparency, rigorous oversight, and clear accountability -- so taxpayers know how their money is being spent and whether it is achieving results.”

TOP TALKER -- N.Y. Times’ Adam Nagourney: “The Republican National Committee chose Michael Steele, an African-American, as party chairman on Friday, putting a new face on a beleaguered party as it seeks the right posture to take on President Obama and an overwhelmingly Democratic Congress. The election of Mr. Steele, a former lieutenant governor of Maryland, means that both major political parties are being led by African-Americans. … Steele … is likely to be, at least until the presidential race starts in two years, at the leading edge of his party as it makes its case against Mr. Obama.”

ASSIGNMENT EDITORS: Steele is scheduled to make “surprise” open-press remarks around NOON or so TODAY at the retreat at The Homestead organized by Rep. Mike Pence (Indiana), chairman of the House Republican Conference. It’s a tad less than four hours from D.C. Contact is House Republican Conference Communications Director Matt Lloyd.

THE BIG IDEA – Politico’s David S. Cloud, “Obama team looks for opening in Iran”: “[M]oving directly into face-to-face talks is looking less attractive to the new administration, as it launches an Iran policy review. … [T]he message behind [recent administration] statements was clear: There might not be preconditions, but it would be much easier politically for the new administration to move ahead quickly with talks if Tehran showed some flexibility.”

POLITICAL CHESS: Friends think Sen. Judd Gregg (R-N.H.) would TAKE the Commerce Secretary job if the President offers it, as he has seriously considered. Gregg is up for reelection next year and could lose – this would be a cushy transition to retirement. And even if he’s not nominated, it’s sure a nice talking point in his increasingly Democratic state. Assuming an eventual Franken win in Minnesota, N.H.’s Dem gov could appoint the 60th Dem senator – a magic number for preventing filibusters.

DATAPOINT, from The (London) Times: “The Muslim population in Britain has grown by more than 500,000 to 2.4 million in just four years … The population multiplied 10 times faster than the rest of society … In the same period the number of Christians in the country fell by more than 2 million.”

TOP STORY -- The tax problems of powerful Democrats – Messieurs Rangel, Geithner and now Daschle – provide a rallying point for House Republicans at their “Congress of Tomorrow” retreat at The Homestead resort.

The WashPost strips it in cols. 1-4 at the top of the front page – “Daschle Owed Back Taxes That Exceeded $128,000: Former Senator Paid Days Before First Confirmation Hearing,” By Ceci Connolly, Paul Kane and Joe Stephens: “Thomas A. Daschle, nominated to be secretary of the Department of Health and Human Services, did not pay more than $128,000 in taxes over three years, a revelation that poses a potential obstacle to his Senate confirmation. The back taxes, along with $12,000 in interest and penalties, involved unreported consulting fees, questionable charitable contributions, and a car and driver provided by a private equity firm run by entrepreneur and longtime Democratic Party donor Leo J. Hindery Jr., according to a confidential draft report prepared by Senate Finance Committee staff.

“A spokeswoman for Daschle confirmed last night that he recently paid back taxes in excess of $100,000. She said that Daschle, a former Senate majority leader, and his accountant discovered the error regarding the luxury car service and reported it to the committee after his vetting was completed. Daschle paid the back taxes six days before his first Senate confirmation hearing with the Senate Health, Education, Labor and Pensions Committee. The Finance Committee, however, has jurisdiction over his nomination.”

Huffington Post banners it as DRIVING MR. DASCHLE. L.A. Times A1s it as, “TAXES PLAGUE ANOTHER NOMINEE.” N.Y. Times A1, one col.: “Daschle Pays 3 Years of Tax On Use of Car.” The online head is more muscular: “Use of Free Car Lands Tom Daschle in Tax Trouble.”

Politico’s Jonathan Martin, David Rogers and Carrie Budoff Brown: “Daschle used the Cadillac and driver around Washington while working as a consultant to a New York City private equity firm, InterMedia Advisors. He used the limo 80 percent for personal use – resulting in unreported income of more than $255,000 for the three years, Senate Finance Committee documents show. InterMedia paid Daschle consulting fees at a rate of $1 million a year – or $83,333 a month. Daschle’s financial disclosure forms put his income from InterMedia at more than $2 million since 2005. …

“Obama aides say the president is committed to ensuring Daschle’s confirmation. ‘The President has confidence that Senator Daschle is the right person to lead the fight for health care reform,’ Obama deputy press secretary Bill Burton told Politico. Those familiar with Daschle’s thinking say he will continue to pursue the nomination. ‘Yes he will,’ one source close to Daschle told Politico when asked if the former senator would go forward. And Senate Majority Leader Harry Reid also said he was ‘confident’ Daschle would survive. Democrats have called a Monday meeting among Senate Finance Committee members to discuss the prospects for the nomination.

In a Friday night classic, ABC’s Jake Tapper breaks the story on “World News.”

SPEECHES TO HEALTH INDUSTRY -- Politico’s Kenneth P. Vogel reports that forms out Friday show Daschle “was paid $220,000 to give speeches to outfits that have a vested interest in the result the work he would do once confirmed as Secretary of Health and Human Services.”

WHITE HOUSE PRESS SECRETARY ROBERT GIBBS gives an interview to White House Correspondent PETER MAER for CBS Radio’s “Weekend Roundup”: Says the President and his staff have “had a pretty frenetic pace” but downplays any prospect of burnout: “I know he [Obama] will pace himself and we’ll pace ourselves.” Asked how the presidency has changed Obama, the press secretary said, “Just in the job itself, he has in a very short period of time filled up the seat he sits in every day.” Gibbs quickly noted that Obama “has not let any of this stuff go to his head,” and noted that Obama “doesn’t get too excited about good news. He doesn’t get too down about bad news.” But he added, “From where we started to where we are now, it’s been remarkable to watch.” Gibbs also discussed the somewhat relaxed style at recent official events where piano music and not “Hail to the Chief” could be heard wafting through the White House hallways. Gibbs chuckled about the elevator-style music. He said he didn’t know if the president had asked that musicians not play the presidential march but noted that Obama “is not a pomp-and-circumstance kind of guy.” He said the president “is much more interested in the substance of the job.”

Gibbs tells Maer that he believes his boss has finally quit smoking. He says he has not seen Barack Obama light up “in some time.” Gibbs added, “He understands the powerful example he has to be for teenagers and adults around the world.” Gibbs also reflected on his own job, saying, “I haven’t felt quite like the human piñata yet. I have a feeling those days are coming.” When asked if he would ever lie from the podium, the press secretary responded with a flat “no.”

“I think that whenever somebody in my capacity does that, it puts you in a position where reporters are now having to guess whether what you’re saying is true or not. I think at that point, you’re incapable of doing your job.” He said there would be times when he would not be as open about what he may or not know, especially on national security issues. But he emphasized, “I’m not going to lie from that podium and I think the president would expect me to tell the truth.”

BREAKING THROUGH – CNN “American Morning” shows H.R. 1 on the screen and asks, “FULL OF PORK? STIMULUS OR WASTE?” The e-mail feature asks viewers what they think counts as pork. And AP’s Andrew Taylor writes, “Stimulus-Really? Analysis: Stimulus bill that's not all stimulating”: “They call it ‘stimulus’ legislation, but the economic measures racing through Congress would devote tens of billions of dollars to causes that have little to do with jolting the country out of recession. There's $345 million for Agriculture Department computers, $650 million for TV converter boxes, $15 billion for college scholarships.”

*** Starbucks is celebrating the 1.27 million hours of community service pledged by Americans through the “I’m In” campaign in the days following the inauguration. The company asked people to find just five hours of time – which equates to just 25 minute a month for a year. *** Happy weekend.

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About The Author

Mike Allen is the chief White House correspondent for POLITICO. He comes to us from Time magazine where he was their White House correspondent. Prior to that, Allen spent six years at The Washington Post, where he covered President Bush's first term, Capitol Hill, campaign finance, and the Bush, Gore and Bradley campaigns of 2000. Before turning to national politics, he covered schools and local governments in rural counties outside Fredericksburg, Va., for The Free Lance-Star, then wrote about Doug Wilder, Oliver North, Chuck Robb and the Bobbitts for the Richmond Times-Dispatch, where he nurtured police sources on overnight ride-alongs through housing projects. Allen also covered Mayor Giuliani, the Connecticut statehouse and the wacky rich of Greenwich for The New York Times. Before moving to The Times, he did stints in the Richmond and Alexandria bureaus of The Washington Post. Allen grew up in Orange County, Calif., and has a B.A. from Washington and Lee University, where he majored in politics and journalism.